Wendy's (WEN) PT Raised to $19 at BofA/Merrill Lynch Following Inspire Brands Sale Agreement

BofA/Merrill Lynch analyst Gregory Francfort raised the price target on Wendy's (NASDAQ: WEN) to $19.00 (from $18.00) while maintaining a Neutral rating following the company's announcement that it has reached an agreement to sell its 12.3% ownership interest in Inspire Brands to Inspire for $450mn.

Francfort estimates the deal will be $0.06 accretive to ongoing EPS. BofA/Merrill Lynch raised 2019 EPS to $0.71 from $0.65. The WEN Board authorized an additional $100mn in share repurchase authorization beyond its current $93.1mn balance but Francfort models 100% of the $340mn post-tax proceeds going to buying stock.

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